07KYIV1826, UKRAINE: HUNGARY LENDS QUIET SUPPORT TO UKRAINE’S

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C O N F I D E N T I A L SECTION 01 OF 02 KYIV 001826
SIPDIS
SIPDIS
E.O. 12958: DECL: 07/25/2017
TAGS: PGOVPRELETRDEINVHUUP
SUBJECT: UKRAINE: HUNGARY LENDS QUIET SUPPORT TO UKRAINE'S
EU ASPIRATIONS
REF: BUDAPEST 2719
Classified By: Acting Political Counselor Michael Uyehara for reasons 1
.4(b,d)
1 Summary. President Yushchenko and Hungarian Prime Minister
Ferenc Gyurcsany's two meetings, during Yushchenko's July
10-11 state visit to Hungary and Gyurcsany's July 27 visit
Mukacheve in the Ukrainian Carpathian region, indicates
warming relations and follows on expanding bilateral trade.
The pace of high-level bilateral interactions has picked up
in 2007, beginning with Gyurcsany's and Yushchenko's January
14 meeting in Zakarpattia Oblast and followed by Prime
Minister Yanukovych's March 6 working visit to Budapest.
Hungarian President Laszlo Solyom's state visit to Ukraine,
planned for 2008, will round out the exchange of visits.
With trade growing at a 30% annual rate (approaching two
billion dollars a year) and with ongoing strong Ukrainian
investment in Hungary, the outlook for continued robust
economic interaction is strong. Hungary provides
considerable support to Ukraine's 150,000 ethnic Hungarians
and would like to see more Ukrainian support of Hungarian
schools and recognition of Hungarian university degrees. The
two countries realize that the welfare of ethnic Hungarians
in Ukraine is an important factor in their relations; a
bilateral committee meets regularly to address issues faced
by their respective ethnic minorities. The Hungarian Charge
d'Affaires in Kyiv said his country is a strong supporter of
Ukraine's EU aspirations and together with Poland and
Lithuania form a pro-Ukraine "troika" within the EU. End
Summary.
¶2. (U) We met with Ukrainian Hungarians Society Director
Tibor Vass on June 15, Hungarian Embassy Charge d'Affairs
Laszlo Horvath on July 17, and the Acting Head of the State
committee on Nationalities and Religions Heorhiy Popov on
July 25 to obtain an overview of Ukraine-Hungary relations in
the wake of Yushchenko's state visit.
Shared History and Increasing Economic Interaction
--------------------------------------------- -----
¶3. (U) Ukraine shares a short 64 mile border with Hungary and
ties over more than a millennium. In 895 AD, the seven
Magyar tribes crossed the Verecke pass in the Carpathian
Mountains and conquered what is now Hungary. When President
Solyom visits Ukraine in 2008, he will dedicate a memorial to
that event at the pass. Much of western Ukraine was part of
the Austria-Hungarian empire before the outbreak of the First
World War. Zakarpattia, where 97% of Ukraine's 150,000
ethnic Hungarians live, wound up as part of Czechoslovakia at
the outbreak of the Second World War, and was incorporated
into the Soviet Union shortly after the German surrender in
¶1945. Popov, who is also co-chairman of the Mixed
Ukrainian-Hungarian Commission for the Rights of National
Minorities, noted that there are only 6,000 ethnic Ukrainians
in Hungary.
¶4. (U) According to the World Trade Atlas, Ukraine imported
$802 million of goods and services in 2006 from Hungary (a
24% increase over 2005), while exporting $946 million (a 37%
increase over 2005), making Hungary Ukraine's 14th largest
source of imports and 8th largest export destination.
Ukraine exports chemicals and pharmaceuticals, pulp and
paper, and radio and electronic equipment to Hungary and
imports grain, oil and oil products, lumber and lumber
products, textiles, and electronic equipment. In addition to
substantial official trade, the border region is the scene of
a lively smuggling operation that provides income to an
estimated 100,000 people (reftel).
¶5. (U) Horvath said that Yushchenko visited the
Ukrainian-owned Dunaferr steelworks while on the state visit
to highlight Ukrainian investment in Hungary. Horvath also
mentioned that Ukraine's Ferrexpo is planning to construct a
rolled steel plant in north-east Hungary "on a greenfield
site." He remarked that there have been discussions about
constructing a Hungarian-owned one billion cubic meter
underground gas storage facility on Ukrainian territory and
construction of small hydro-electric power stations on the
Tysa river. Horvath said that there is not much Hungarian
investment in Ukraine but was optimistic about continued
Ukrainian investment in his country.
Hungart Focuses on Protecting Ukraine's Ethnic Hungarians
--------------------------------------------- ------------
¶6. (U) Although Hungary has s fairly small population
compared to Ukraine (10 million verses 46 million), it has an
impressive diplomatic presence here, maintaining consulates
in Uzhhorod and Berehove in addition to an embassy in Kyiv
KYIV 00001826 002 OF 002
that together issue over 200,000 visas a year. Hungary takes
a strong interest in the welfare of the ethnic Hungarians in
Ukraine and goes to great lengths to help them preserve their
identity; they are entitled to a Hungarian identity card
which gives the holder rights to many of the benefi
ts of
citizenship, including access to higher education at
Hungarian universities. Hungary also issues them a "national
visa" that is good for five years instead of the usual
one-year term. Hungary provides financial support to the 70
Hungarian language schools in Zakarpattia and support to many
of the municipalities with a high proportion of ethnic
Hungarian residents.
¶7. (C) Although the Mixed Ukrainian-Hungarian Commission for
the Rights of National Minorities meets regularly to address
problems faced by ethnic Ukrainians in Hungary and ethnic
Hungarians in Ukraine, both Horvath and Vass complained about
the lack of state funding for Hungarian language schools (a
complaint that Popov dismissed); the difficulties that ethnic
Hungarian students face when they take Ukrainian language
university entrance examinations; and bureaucratic hurdles
faced by Ukrainian graduates of Hungarian universities in
getting their degrees officially recognized here. Horvath
and Vass both noted that there had been considerable
immigration to Hungary by young Ukrainians of Hungarian
decent. Vass estimated that 10,000 ethnic Hungarians had
left Ukraine for Hungary between 1991 and 2001 when the last
official census was taken. Horvath was concerned that the
rising standard of living in Hungary would continue to tempt
many ambitious young Ukrainians of Hungarian origin to leave.
Hungary is a Strong Supporter of Ukraine's EU Aspirations
--------------------------------------------- ------------
¶8. (C) We noticed several events during Yushchenko's state
visit related to the 1956 intervention by Soviet troops in
Hungary and asked Horvath if the memory of this tragedy has
been an impediment to better relations. Horvath said the
gestures Yushchenko make during his trip were appreciated but
said "they were his idea" and in general Hungarians do not
blame Ukrainians for what happened. Horvath said that "you
don't hear much about relations between Hungary and Ukraine
because there are no problems." He noted that Hungary is an
active supporter of Ukraine within the EU and together with
Lithuania and Poland form a pro-Ukraine "troika."
¶9. (C) Horvath noted that little progress had been made on
the 2007 Action Plan that was signed on March 6 during
Yanukovych's visit. Horvath did not expect much to be
accomplished on the Action Plan -- which addressed many of
the issues that are of concern to ethnic Hungarians here --
before the September 30 Verkhovna Rada elections which he
hoped would bring in "a new government." Both Horvath and
Vass lamented the fact that the ethnic Hungarian community
was politically divided between The Party of Hungarians of
Ukraine and the Democratic Party of Hungarians of Ukraine,
which was partly responsible for the absence of an ethnic
Hungarian in the Rada.
¶10. (U) Visit Embassy Kyiv's classified website:
www.state.sgov.gov/p/eur/kiev.
Taylor

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